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That aside, if you ask me, the cheapest way is to get rid of US jobs. Remove the US parts so you have a 100% non-US product. 0% tariff so far. For US-only sales
by ryao 2y ago
That aside, if you ask me, the cheapest way is to get rid of US jobs. Remove the US parts so you have a 100% non-US product. 0% tariff so far. For US-only sales have it assembled shipped to a country like Singapore or Australia with 10% tariffs to package and re-label. When you ship from say Singapore to US, the buyer fills in the tariff code with country of origin Singapore. Case closed. 10% tariffs.
I did not ask, but this does not make any sense to me. As per the following article, this trick where the country of origin changes based on assembly only applies to Canada and Mexico, not Singapore or Australia:
https://semianalysis.com/2025/04/10/tariff-armageddon-gpu-loopholes/#gpu-tariff-loophole-under-the-usmca https://semianalysis.com/2025/04/10/tariff-armageddon-gpu-lo...
It is unclear how removing U.S. components from products would reduce U.S. tariffs.
Excluding your “remove US components idea”, it is clear to me that China is losing in such a scenario, since they cannot tariff the non-Chinese components anymore and the Chinese components would be subject to tariffs in the country of assembly. To be clear, I do not know to what extent they enforce tariffs on non-Chinese components, but I have read of them placing tariffs imports from other countries, which could affect the components made in those countries.
- re-thc 2y ago> not Singapore or Australia These only have 10% reciprocal tariffs applied so I used it as the example. Paying 10% is a lot easier than dealing with the Canada and Mexico deal, which is more likely to change. > It is unclear how removing U.S. components from products would reduce U.S. tariffs. US components need to pay tariffs since the US cannot produce that component whole in the US completely. Removing them makes it cheaper. > it is clear to me that China is losing in such a scenario, since they cannot tariff the non-Chinese components anymore Why do they want that? Who wants tariffs? Every economist says that random use of tariffs has an adverse impact. China hasn't been paying tariffs to the US either. Most proper engagements have been re-routing. Only US small businesses suffer (since re-routing is harder for small businesses).